P.M. BRIEFING : UAL Machinists Protest Buyout
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CHICAGO — The machinists union at United Airlines has asked the Labor Department to block the proposed employee buyout of the airlines’ parent company, claiming it violates laws governing the use of retirement funds.
In a three-page letter sent Wednesday to Labor Secretary Elizabeth Hanford Dole, the union charged that the tax benefits of the proposed $6.75-billion buyout “are effectively subsidizing a substantial and excessive windfall” to UAL Corp.’s management and United’s pilots, the employee group spearheading the takeover effort.
On Tuesday, United’s pilots voted overwhelmingly to commit $20 million from their $1.2-billion pension fund to buy preferred stock in an employee stock ownership plan.
The pilots are the only UAL employee group so far committed to participating in the buyout.
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